Exhibit 13.1 The Following Questions Are Based on the Output Below

question 52

Multiple Choice

Exhibit 13.1
The following questions are based on the output below.
A store currently operates its service system with 1 operator. Arrivals follow a Poisson distribution and service times are exponentially distributed. The following spreadsheet has been developed for the system.
-Refer to Exhibit 13.1. What is the probability that a customer can go directly into service without waiting in line?

• A) 0.00
• B) 0.25
• C) 0.75
• D) 1.00

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Definitions:

Channel Functions

Activities that enable the transfer of goods from the producer to the consumer, including physical distribution, financing, and information sharing.

Perishability

A characteristic of services indicating that they cannot be stored for future use and their value vanishes if not consumed within a particular period.

Service Capacity

The maximum output or amount of service that can be provided by a business in a given period.

Reference Pricing

A pricing strategy where the price of a product is determined relative to the price of other similar products or services in the market.